Construction Monthly Magazine | Houston 2023 Build Expo Show Edition

Recession Protection
Strategies to Increase &
Retain Your Working Capital
By RICHARD RODGERS
Founder – Dannah Investment Group LLC
Richard@Dannahinvestments.com
214-614-2663
Booth
FREE SEMINAR
PRACTICAL STEPS TO INCREASE
& RETAIN WORKING CAPITAL
Wednesday, 2:30 p.m.-3:30 p.m.
445SILVER
| Room 609
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Without an offensive posture
determined to save your
company money, economic
insecurities, supply chain
disruptions, and managing
a challenging workforce can
influence companies to be
more reactive, adjusting to
the ever-changing rules and
guidelines. Now is the time
to be proactive, but most
business owners cannot
invest the hours to become
a financial expert and stay
current with the latest tax
strategies.
RICHARD RODGERS
Founder – Dannah
Investment Group LLC
1. Drop in sales of 50% from 2019 to 2020 or a 20% decline by quarter for the first 3 quarters
of 2019 compared to 2021.
2. A business disruption caused by a governmental mandate. This second method is the area that
our tax attorney qualifies most construction companies as eligible. If you have been
told that you don’t qualify as a construction company, it is worth a call to explain
why you might.
3. Rethink Health Insurance
The American Healthcare Act has afforded the creation of programs beneficial
to both the employer and the employee. These unique health insurance plans
incorporate healthy lifestyle strategies that can make you as a business owner
approximately $500 per employee per year. In addition, employees can save
up to $1,800 per year by participating in the healthy lifestyle campaign. We
help connect you to partners who manage all the details and allow you to add
this benefit without changing the quality of care or even changing insurance
companies.
Businesses need a partner whose primary
focus is to make companies more profitable.
This can be accomplished through
operational, insurance and tax strategies
by minimizing your income tax so you can
maximize your working capital to strengthen
your company. We want to share 6 strategies
you should consider to increase profitability
at your construction company:
1. Conduct a Utility Audit
A utility audit company can get you refunded
for past overcharges while also saving on
future bills. They will look back three years
on your utility bills and determine if you
have any bills you should not be paying. On
average, 80-95% of companies qualify for a
refund. They will also do an annual review
for the next three years to help you find any
additional savings.
2. Apply for the Employee Retention Credit
Employee Retention Credits (ERC) came
out the same time as Paycheck Protection
Program (PPP) loans as an incentive program
to help stimulate the economy during the
pandemic. Originally, you could choose
either a PPP loan or ERC. At the end of 2020,
Congress decided you could get both, as long
as you back out the money received from
your PPP loan employee forgiveness as well
as other requirements. There are two ways to
qualify for the ERC:
4. Eliminate Credit Card Charges
Credit card fees are changing dramatically. We can help you reduce or eliminate your credit
card fees by using a merchant processing platform that lowers your monthly merchant credit
card processing fee by up to 15-20%. You can also provide a potential rebate to each customer,
putting money back in their pocket directly after each sale.
5. Be Proactive with Tax Planning
Tax planning is not planning how much tax you have to pay; tax planning is planning on how
to minimize your tax liability by utilizing tax strategies. We can help you reduce your adjusted
gross income through charitable strategies and tax-deductible investments. This is a more
customized approach and is worth a conversation.
6. Defer Your Capital Gains
If you are selling your company at any point, you could be facing substantial capital gains. We have
strategies to defer capital gains, thereby enabling you to earn investment income on what you
would otherwise pay in taxes. We can also increase FDIC limits on cash balances above $1 million.
To give you an idea on the cost savings if you took advantage of these strategies, we have
included a sample Texas Construction Company with potential savings.
Fictitious Texas Construction Company
50 Employees Monthly credit card sales: $100,000 Utility costs: $20,000
Texas Construction Company
Strategy 1: Utility Audit Savings $24,000
Strategy 2: Credit Card Savings $42,000
Strategy 3: ERC Savings $756,000
Strategy 4: Health Insurance Savings $25,000
Strategy 5: Tax Planning Savings $285,392
Aggregate Savings: $1,132,392
As you can see, there are substantial savings in each strategy that your company could capitalize
on. All of these strategies require no up-front cost to you, other than your time. By shifting to an
offensive posture, you could save your company hundreds of thousands of dollars.
14 CONSTRUCTIONMONTHLY.COM